ResMed (RMD)

Analysts have reacted positively to news that CareFusion will distribute
ResMed
’s Stellar 100 and 150 non-invasive ventilators in the US over the next five years.

Deutsche Bank points out this provides ResMed access to the lucrative US institutional market for ventilators, which is growing at 6 per cent per annum. The broker reckons it could add $US14 million ($12.8 million) to ResMed’s sales, but that’s not enough for it to change its “hold" rating on the stock.

UBS says the partnership between CareFusion and ResMed is a “good strategic fit" and that the market could be underestimating the upside to earnings that could be achieved from entry into ventilation markets. A “buy" rating and $36.87 target price were maintained.